USD/JPY Resiliency Continues to Baffle Market Bears

The USD/JPY currency pair has been experiencing an interesting trend in recent days. According to Christopher Lewis, a technical analyst at DailyForex, the US dollar initially dipped during the trading session on Monday but bounced back as it has done several times before. This resiliency is something worth paying attention to, as despite the negative headlines about the Bank of Japan, the market seems to be shrugging them off.

The 158 yen level and the 200-day EMA are providing support for the pair, and a trend line below this area has been successfully defended. The 160 yen level above could be an important resistance point to watch, as breaking through it could lead to a challenge of the 50-day EMA.

Christopher Lewis notes that the carry trade is working in favor of traders, with rates in America still relatively elevated. This makes the USD/JPY pair a attractive opportunity for those looking to profit from the difference in interest rates between the two countries.